Germany's liberal Free Democrats on Monday pledged to cut taxes, government red tape and labour regulations in an election programme aimed at returning the party to its kingmaker role in German politics.

Guido Westerwelle, FDP chairman, told journalists in Berlin that if the party entered government after the September election on the coat-tails of the larger centre-right Christian Democratic Union, it would push for €17bn-€19bn ($23bn, £13bn) in tax cuts paid for by abolishing a large part of Germany's financial subsidies and tax loopholes.